Crude oil production by the Organisation of the Petroleum Exporting Countries and allies is scheduled to rise by a collective 350,000 barrels per day starting from May, followed by another 350,000 bpd increase in June and a 441,000 bpd rise in July, according to S&P Global Platts.
The 23-country alliance has been reining in about eight million bpd of production – roughly eight per cent of pre-pandemic demand – over the past few months.
Saudi Arabia, which has been holding its output an extra one million bpd below its quota, will also unwind its extra cut by 250,000 bpd in May, 350,000 bpd in June and 400,000 bpd in July.
The group’s April 28 meeting is expected to reaffirm those plans, banking on the market’s ability to absorb the additional crude as the global economy continues to recover from the pandemic.
Dated Brent prices have largely settled in the mid-$60s/b in recent weeks, having surged 40 per cent since October.
OPEC+ sources said given the stability, the meeting could be changed from a full ministerial gathering to just a convening of the nine-country monitoring committee, co-chaired by Saudi Arabia and Russia.
However, that call has not yet been made, the sources added.
